Incorporating a company in Malaysia costs between RM 1,500 and RM 4,000 for a standard Sdn Bhd, with government fees (SSM) around RM 1,010 and professional service fees ranging from RM 500 to RM 3,000, depending on complexity and add-ons.
Malaysia Government Registration Fees Breakdown
The primary fee for registering a private limited company (Sdn Bhd) with the Companies Commission of Malaysia (SSM) includes a name reservation charge of RM 30 and a registration fee based on stated capital. For capital up to RM 400,000, the SSM fee is RM 1,010; for capital between RM 400,001 and RM 500,000, it rises to RM 1,610. Additional charges apply for filing statutory documents like the Memorandum and Articles of Association. These fees are non-negotiable and must be paid upfront during incorporation.
Typical Professional Service Fee Estimates
Engaging a corporate secretarial firm or a lawyer typically costs between RM 500 and RM 3,000, excluding government fees. The variation depends on the scope of services: basic packages cover name approval, document drafting, and registration; premium packages include post-incorporation assistance like business bank account opening and tax registration. Some firms offer online incorporation for as low as RM 699, but hidden charges for certified copies or urgent processing can add RM 200–RM 500.
Annual Secretarial and Compliance Costs
After incorporation, companies must maintain a registered office address, appoint a qualified company secretary, and file annual returns. These recurring costs total RM 1,000 to RM 3,000 per year. The secretary’s retainer fee alone ranges from RM 600 to RM 1,800 annually, depending on workload. Additionally, audit fees (for companies above the exemption threshold) start at RM 2,000, and tax filing costs add RM 500–RM 1,500. Compliance failures incur SSM late fees of up to RM 300 per year.
Malaysian Minimum Paid‑Up Capital Requirements
The law requires a minimum paid‑up capital of RM 1 for Sdn Bhd, but practical considerations often demand higher amounts, especially for foreign‑owned companies. Banks typically require at least RM 100,000 in paid‑up capital to open a corporate account, and certain regulated industries (e.g., construction, finance) mandate a minimum of RM 500,000. There is no maximum limit, and capital can be increased later at a filing fee of RM 100 per RM 1,000 increase.
Hidden Incorporation Expenses to Expect
Beyond standard fees, entrepreneurs often overlook costs such as stamp duty on share certificates (RM 10 per RM 1,000 of capital), company seal (RM 50–RM 150), and urgent processing surcharges (up to RM 500). If a physical registered office address is needed, renting a virtual office costs RM 300–RM 800 per month. For foreign directors, obtaining an Employment Pass or DP10 permit adds RM 2,000–RM 5,000. Due diligence on nominee services may also cost RM 300–RM 900.
Key Annual Maintenance Cost Considerations
Ongoing expenses include annual SSM filing fees (RM 50–RM 200), audit fees (depending on turnover), tax compliance costs, and directors’ liability insurance. Companies with turnover below RM 500,000 may qualify for audit exemption, reducing annual costs by RM 2,000–RM 4,000. However, all companies must still file annual returns and hold annual general meetings (AGM). Non‑compliance with AGM deadlines can result in compound fines of RM 50–RM 500 per offence.
| Cost Category | Estimated RM Range | Remarks |
|---|---|---|
| SSM Registration Fee | 1,010 – 1,610 | Based on stated capital ≤ RM 500,000 |
| Name Reservation | 30 | One‑time fee |
| Professional Service Fee | 500 – 3,000 | Secretarial or legal firm |
| Registered Office (Virtual) | 300 – 800 per month | Optional physical address |
| Company Secretary Retainer | 600 – 1,800 per year | Annual compliance |
| Audit Fee (if applicable) | 2,000 – 4,000 per year | Exempt for small firms |
| Tax Filing | 500 – 1,500 per year | Corporate tax return |
| Annual Return Filing | 50 – 200 per year | SSM late penalties extra |
| Foreign Work Pass (if needed) | 2,000 – 5,000 | For foreign directors |
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